All Topics / Creative Investing / Positive Cash Flow Properties

Viewing 20 posts - 1 through 20 (of 24 total)
  • Profile photo of DasheedDasheed
    Member
    @dasheed
    Join Date: 2007
    Post Count: 1

    I have read the '0 to 135 properties' book and found the section on positive cash flow interesting. However, in today's current market, we have no hope of securing a $45000 first investment property – so it is very disheartening to think that I will always be losing money due to the fact that I will have to borrow a large amount of the investment cost in order to secure a property. Myself and my wife earn good wages and have no kids but it still seems that I will not be able to own 10+ properties as I would like to. Any suggestions?

    Profile photo of kellylockkellylock
    Member
    @kellylock
    Join Date: 2007
    Post Count: 60

    Just because there are no $45,000 properties anymore, doesn't mean you can't begin.

    In order to get a positive cashflow property you may need to become more creative (Steveé second book has some ideas, as do other books on the market).

    Find a place to start: maybe a unit, maybe build a share portfolio first, whatever suits your circumstances, but start somewhere. I suggest you read some more and subscribe to some investment email newsletters, or some money magazines, or take some other action to learn more. Education and research will show you the direction to take that is right for you.

    Some businesses work with first time investors to help them begin to build thier property portfolio (for a fee). This may be worth checking out. Sometimes they give you some advice for free.

    Get a wide range of advice and take action!

    Profile photo of oneiriceroneiricer
    Member
    @oneiricer
    Join Date: 2007
    Post Count: 56

    Hey there Kellylock,

    Just wondering, what are 'some business'? i woudl love to get in touch with some of these businesses that help investors start.

    Profile photo of bezyourselfbezyourself
    Participant
    @bezyourself
    Join Date: 2007
    Post Count: 4

    Dasheed

    I believed we can MAKE a positive cash flow INVESTMENT. Please try not to think (focussed) on BUY a positive cashflow property or invest in PROPERTY. 

    Tthe property price and rental return these days almost always will be a negative gearing property. But it can be a positive cashflow property if you try to consider the tax relief (if you are receive a salary/wages) and take into account depreciation of the assets for instance. I am not expert yet but that what I have turn from negative to positive cashflow property.

    Good luck

    Profile photo of BagheeraBagheera
    Participant
    @bagheera
    Join Date: 2007
    Post Count: 10

    Keep in mind that a negatively geared property will not set you free from your wage/salary. Probably better to learn about easy cost effective renovations. Then follow a simple strategy
    Stage 1 
    a. Buy, b. Renovate, c. Rent out , d. Sell for a 20-30% profit as a negatively geared investment opportunity.
    Stage 2
    repeat steps a-d two or three times
    Stage 3
    Purchase property following steps a-c, but with the huge deposit you now have, there is excellent positive cash flow. Repeat.

    Profile photo of L.A AussieL.A Aussie
    Member
    @l.a-aussie
    Join Date: 2006
    Post Count: 1,488

    Most people have to work hard, save, sacrifice and do without to get their FIRST property, whether it is a PPoR or an I.P.
    You have no kids and two incomes.
    If you knuckle down and be patient you will buy your first one soon enough – year or two.
    Most lenders will lend up to around 90% with LMI these days, so you won't have to save too much to get a foot in the door if you set your sights on a relatively cheap first property.
    It may be a neg geared I.P or a PPoR; either way you are in the game, and if you select well, your property value will go up fairly quickly and then you are on your way to no.2, then no.3 etc.
    The process can be exponential.

    Profile photo of Tysonboss1Tysonboss1
    Participant
    @tysonboss1
    Join Date: 2007
    Post Count: 306

    All of the strands above offer great advice, All I can say is educate your self, and take action.

    And remember negative geared property doesn't always have to remain negatively geared, If you can find a property thats been held by a lazy investor for a while where they haven't been increasing the rent, maybe let a bit of basic maintance lapse it can be a good opportunity get in there by a bit cheaper cause of the lower rental yeild, freashen the place up increase the rent and that should bring you a bit closer to neutrel cashflow,

    pay to get a deppretation report done up, this will give you a bigger tax return each year so that again helps your cash flow, then with for rental increase's in line with inflation and basic rent increases you should be able get a positive cashflow outcome, over time.

    But as mentioned by the guys above the more proactive you are in finding good opportunites, adding valve, and manageing your investments the quicker you will get ahead.

    Profile photo of bennidobennido
    Participant
    @bennido
    Join Date: 2004
    Post Count: 195

    Though $45K +ve cashflow properties have all but disappeared, there are tons of choices if you are willing to spend $100 – $150K. And you don't even need to be creative about it .. :)

    Profile photo of Maple9Maple9
    Member
    @maple9
    Join Date: 2007
    Post Count: 10

    Hi,
    I'm quite new in the investment market as well, (1-2 months) and i've been reading, subscribing, reading forums, websites and all i can say its the best thing i've done so far. I've been to a couple of homes just to get an idea of the process. Although i dont have any IP yet, i do have some knowledge (slow learner) on what can be bought out there.

    I've seen some apratments $100k that are +ve cashflow and homes that are $67k and return $130 per week rent. There was also this one home in NT for $145k return $280 per week. Unfortunately i was a bit late in offering an offer.
     
    I definetly think their out their.

    Cheers,

    maple9

    Profile photo of crouchingtigercrouchingtiger
    Participant
    @crouchingtiger
    Join Date: 2003
    Post Count: 2

    It takes time, it is not a get rich quick scheme, we need patience with investment properties. Let them grow in equity and you can then draw down from them, via a line of credit. The debt you have is then good debt as the property you have should grow in capital if you have bought in the right locations.

    A lot of people retire after buying loads of investment properties, it can be done even if you stop working as the income from rentals should be able to pay for the property as well as your draw down amount.

    Profile photo of sapphire101sapphire101
    Participant
    @sapphire101
    Join Date: 2006
    Post Count: 203

    Hi

    I have a strategy in Melbourne that could apply anywhere that creates positive cashflow for specific properties in very specific areas. It is based on Steve McKnights philosophy of CF+ props but with a twist and it works well. If you are interested please email [email protected]

    Regards
    Ian

    Profile photo of POBPOB
    Member
    @pob
    Join Date: 2007
    Post Count: 10

    Dasheed hi there In have a friend that had around 5 or 6 IP and had them for about 5 years. They simply sold 1 and paid down all of the others to at least make them neutral and positively geared.

    So if you can only have 10 IP NG (as you mentioned) than after a while 8 IP PG is not out of the question.

    Only last week one of mine whent positively geared. (Only $70 a month but still?

    POB

    Profile photo of Luke TaylorLuke Taylor
    Participant
    @world-changer
    Join Date: 2005
    Post Count: 415

    hi Dasheed,
    Welcome mate!
    Dont assume you cant buy cashflow properties anymore.They are stil around.
    We purchased a property this month for $22K that needs a rehab but will rent for $150 per week after $40K spent on it. This area is getting good capitol growth also.
    But cashflow properties are not the be all and end all.These properties attract work keeping them going.What i mean by that is you have maintenance costs and tenant maintenance costs.(they can be high maintenance!)
    Get creative and start placing some adds in the paper of the area yr targeting.You may pick up those deals after all.

    Kind regards
    Luke

    Luke Taylor | Hope Property Investing
    http://hopepropertyinvesting.com
    Email Me

    Property Support,Strategist and Buyers Agent

    Profile photo of bardonbardon
    Participant
    @bardon
    Join Date: 2004
    Post Count: 557

    Dasheed

    there is a lot of cashflow +ve in SEQ even in high growth suburbs like Parkwood, I had an offer on the 480K one lenders will do a 97% LVR, treasurer made me pull out

    A new hospital is going to be built here also

    Toowoomba is a buyers market shit loads of affordable cf+ units on market market take your pick everybody nervous about water, it is a fact that the whole area of darling downs is going to go ahead with rail line, coal mining and coal seam methane gas I work in this industry and there are many well heads coming on line in western qld, now that the PNG to QLD gas pipeline is not going ahead  there will be a gas shortage in eastern states in 2012, coal seam methane gas will be huge the waste product is water!! Toowomba will benefit from this growth

    http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104195321&f=30&p=10&t=res&ty=&fmt=&header=&c=69030645&cc=AUSTRALIA&s=qld&snf=rbs&tm=1187868279

    http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104115721&f=40&p=10&t=res&ty=&fmt=&header=&c=69030645&s=qld&snf=rbs&tm=1187868279

    Profile photo of bardonbardon
    Participant
    @bardon
    Join Date: 2004
    Post Count: 557

    Dasheed

    there is a lot of cashflow +ve in SEQ even in high growth suburbs like Parkwood, I had an offer on the 480K one lenders will do a 97% LVR, treasurer made me pull out

    A new hospital is going to be built here also

    Toowoomba is a buyers market shit loads of affordable cf+ units on market market take your pick everybody nervous about water, it is a fact that the whole area of darling downs is going to go ahead with rail line, coal mining and coal seam methane gas I work in this industry and there are many well heads coming on line in western qld, now that the PNG to QLD gas pipeline is not going ahead  there will be a gas shortage in eastern states in 2012, coal seam methane gas will be huge the waste product is water!! Toowomba will benefit from this growth

    http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104195321&f=30&p=10&t=res&ty=&fmt=&header=&c=69030645&cc=AUSTRALIA&s=qld&snf=rbs&tm=1187868279

    http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104115721&f=40&p=10&t=res&ty=&fmt=&header=&c=69030645&s=qld&snf=rbs&tm=1187868279

    Profile photo of kreepykreepy
    Member
    @kreepy
    Join Date: 2007
    Post Count: 2

    i believe cf+ property is in some very remote and new mining town, the effort you need is to monitor when they are going to finish the project there, meaning there is finite time for cf+.

    Profile photo of bardonbardon
    Participant
    @bardon
    Join Date: 2004
    Post Count: 557

    Dasheed,

    Try Caboolture SEQ 5 bedders 100 per room you might have to pay more to agent to run but CF+ is there and the area is very hot no mines here just chronic shortage of rentals and population increasing

    Profile photo of MrFairGoMrFairGo
    Member
    @mrfairgo
    Join Date: 1969
    Post Count: 93

    And check out Charters Towers too.  Good economy, some cheap properties still available.

    Profile photo of AdministratorAdministrator
    Keymaster
    @piadmin
    Join Date: 2013
    Post Count: 3,225

    Dear Investors,

    Has anyone thought of using a Buyers Agent in order to secure Postive Cash Flow Properties?

    Kind Regards,
    Mark Leith
    Property Advocate
    Global Buyers Agent
    http://www.buyersagent.com.au

    Profile photo of Kiwi-FullaKiwi-Fulla
    Member
    @kiwi-fulla
    Join Date: 2002
    Post Count: 371

    Hey all … good comments here…..

    My swing on it is ….

    Just do something!
    Basically there are 3 ways that most people have in thier skillset to make money out of property:
    1. Buy and Rent – If the yeild is there…. this is typically in the down cycle or slump in the market
    2. Buy Renovate and sell or refinance… if you can't get cashflow then you can get cash to do more transactions.
    3. Buy subdivide and sell of the improved site

    Here are some other suggestions that can get you to the golden path of freedom…..

    4. Buy and add a minor dwelling to create more cashflow and increase yeild and value
    5. Buy and add a room or change a room onto a bedroom to create more cashflow and increase yeild and value
    6. Lease option to create more cashflow and increase yeild and value
    7. Wrap (Vendor Finance) to create more cashflow and increase yeild and value

    If there some skills missing then perhaps we could all get up skilling to increase our chances of success in all market….. we must all move with the tide of change and learn to see the demand no matter what the market is doing.

    Good luck all!

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